The institutional foundation for the protection of minority equity

Author: Liu Yanping
Publisher:
Publish Date: 2006-11-01
Features: "Shareholder Protection" refers to a series of measures and institutional arrangements taken by small and medium-sized shareholders, social norms, government regulatory authorities, and companies to address infringement behaviors by management or major shareholders against small and medium-sized shareholders in modern corporate enterprises. "Shareholder Protection" targets internal management or major shareholders. Generally, in companies with highly dispersed equity, the focus is on internal management, while in companies with concentrated equity, the focus is on major shareholders. In China, shareholder protection must address both internal management and major shareholders. This book is divided into eleven chapters, covering specific topics such as the rights and sources of shareholders, shareholder vulnerability, the dual principal-agent relationship of institutional investors, the relevance of independent directors and the long-term nature of institutional building, ex-post control mechanisms in the market for corporate control, the state-dependent nature of financing structure on shareholder protection, external constraint-based regulatory and legal mechanisms, the incompleteness of contracts and the role of governance, the misalignment of positioning and methods in management buyouts (MBOs), relative control models of banks and natural persons, and policy recommendations, as well as how to view the interests of stakeholders.